Permits to build new houses in the metro Phoenix area were up 57% from January to May 2024. 11,775 permits were issued versus 7,511 in the same period last year. Admittedly that pace is not exceptional, as the rate of new home building has been considered below average for many years. Prior permit volumes were much higher. For example, just before the Great Recession 50,000 permits a year were issued. If that level of construction had continued, the Phoenix area might not have had the current housing deficit of an estimated 100,000 units. But it is encouraging to see that the higher interest rates are not affecting new homes as drastically as resales.
